What does it mean:
Used in subscription-based businesses it’s your current expected annual revenue based on current Monthly Recurring Revenue (MRR).
Monthly Recurring Revenue (MRR) x 12 months = ARR
Use it in a sentence:
“If we can just get to $5M ARR we are almost at break-even.”
“We are doubling our ARR year-over-year thanks to our large distribution partners.”
At a party:
“Did you hear about that startup that hired an actual pirate on the marketing team? They thought it might increase their ARR.”
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